U.S. unveils new Russian Federation sanctions over cyberattacks

14/06/2018

"Placed today (under the sanctions) structures directly engaged in the improvement of Russian capacity in the cyber sphere and under water (this refers to the tracking data transmitted through the underwater communication cables) through working for the FSB, and thus they risk the security of the United States and its allies" - quoted in the Russian press review of the head of the U.S. Treasury Stephen Mnuchin.

Treasury said the sanctions were a response to a number of cyberattacks, including last year's NotPetya attack, as well as intrusions into the USA energy grid and global network infrastructure.

Digital Security was designated pursuant to E.O.

This story is breaking and will be updated. The individuals named on Monday all had ties to Divetechnoservices: Aleksandr Lvovich Tribun, Oleg Sergeyevich Chirikov and Vladimir Yakovlevich Kaganskiy.

It also said that Russian Federation had been tracking undersea cables that carry the bulk of the world's telecommunications data.

USA and North Atlantic Treaty Organisation military officials have warned in the past of an increase in Russian submarines conducting activity along undersea data cables.

"One of the designated entities is controlled by and has provided material and technological support to Russia's Federal Security Service (FSB), while two others have provided the FSB with material and technological support", the statement said.

The entities sanctioned by the USA are Digital Security, and their subsidiaries ERPScan and Embedi, and Kvant Scientific Research Institute (Kvant) and Divetechnoservices.

The sanctions mean that all of the property and interests in property held by the individuals and the businesses will be blocked, and people in the United States will be prohibited from engaging in transactions with them.

ERPScan and Embedi didn't respond to a request for comment.

According to the Treasury Department, the sanctioned firms and individuals are involved in supporting and bolstering the Russian government's offensive hacking activities against the United States and other countries.

"Some of our research team were former members of Digital Security", Donald Anderson, the company's head of marketing, told i24NEWS when reached by phone.

"I woke up and was embraced by such news".

ERPScan CTO & Founder Alexander Polyakov told Bleeping Computer that ERPScan is a private company in the Netherlands and is not an subsidiary of any company listed in the press release.

Polyakov states that regardless of this news, they will continue changing "the world by making it better and more secure". Mikhail Baranov, Digital Security's commercial director, refused to comment on the sanctions, telling The Bell: "It's a odd story". "We are a software company focused on helping to protect ERP systems".

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